This module group provides comprehensive functions for processing contract management and accounting for the available types of business, such as retail finance for credit and leasing, and wholesale finance. The fully automated processes ensure that standardised, recurring operations related to contract management and contract accounting are ideally done without manual intervention.
This module group is used to perform business transactions required for managing a contract – contract opening, editing and termination. In the area of retail finance, an end-to-end dunning process complements the scope of the functionality.
Contract Accounting provides customised unified chart of accounts and accounting functionalities for automated posting of all contract-related income and expenses, revenues and expenditures, as well as deposits and withdrawals. Functions for automated processing of incoming and outgoing payment transactions and for receivables management round off the service portfolio.
External systems for accounting, reporting and payment transactions are integrated via standardised interfaces. All necessary information relating to contract accounting is transferred to financial accounting and cost accounting to the general bookkeeping department, and upon request to group accounting. For the area of leasing, asset accounting is provided or integrated.
Services Contract Management
- Deployment of specialised modules for various user groups, such as bank employees and employees working at the point of sale
- Provision of specialised business transactions for various transaction types, such as retail finance for credit and leasing, and wholesale finance
- Business transactions related to contract opening, such as activation/validation for disbursement and automatic receipt of payments or termination if the contract is not concluded
- Business transactions related to contract processing, such as changes to the asset or product, or the occurrence of another contract lessee in leasing, or for example extensions or unscheduled payments in wholesale finance
- Business transactions related to normal or premature termination of the contract, such as revocation or cancellation in retail finance
- Business transactions generate automatic actions that perform functions that post entries in contract accounting at the relevant maturity date
- Processing of manual entries for special events using booking screen templates, including pre-filled data and validation
- Recording of all entries and automatic actions in the journal according to time by value date and entry date and period, and objectively sorted by for example department, client, document number, document item, document text, amount, ledger, personal account, contract account and conducting a comfortable, purposeful search of information through targeted search, and the selection of sorting criteria and search filters
- Company code-specific enclosures and maintenance of the required unified accounting systems, defining limits and balances as well as person or contract related settlement accounts
- Automated compensation of claims under integrated receivables management and manual clearing for unrecognised items
- Integrated, standardised dunning with dunning history and overview of the current backlogs in the different dunning levels
- Special booking functions realise fully automated payment transaction and use interfaces to payment systems in order to effect the payments in interbank transactions
- Transferring bookings of contract accounting backed up by additional information at least daily to the general bookkeeping department via standardised interfaces and ensuring the correctness of the transmission via reconciliation functions
- Providing information for reporting and controlling via standardised interfaces
Advantages at a glance
- Comprehensive system: afb-CMS covers the entire lifecycle of a contract, from contract opening through processing up to termination in one comprehensive, web-based system.
- Free choice of sales channels: the functions of Contract Management and Accounting are no longer performed only by employees of the financial services provider, but are made available to employees at the point of sale (POS), as well as field staff and other partners involved in the conduct of business.
- Increasing competitiveness: financial services providers that map the front and backoffice functions for all types of transactions in an integrated, web-based system, significantly increase their efficiency, quality and customer focus and thereby achieve successful differentiation in the market.
- High degree of automation: with afb-CMS, our customers operate their business at the highest level of automation. The solution is designed for high-volume, standardised processes, quick decisions and automated handling of contract management. If necessary, the system also supports authorised personnel with manual processing.
- Integration with subsystems: systems for accounting, reporting and payments currently available on the market are integrated via standardised interfaces.
- Flexible financial products: the solution provides the opportunity to offer flexible financial products for specific types of transactions without restrictions between front and backoffice and to make these available on the market in a very short time.
- Multi-currency capacity: the module group supports country-specific formats. The ability to manage currencies and exchange rates offers great benefits in particular for international companies.
- Multi-client capability: the module group supports several company codes/clients per business transaction. This means that each client has its own accounting system, payment transaction accounts and general ledger accounts, as well as specifically established export and import functions for payments, general ledger export and subsidiary ledger import.
- Local and international accounting principles: afb-CMS supports parallel accounting pursuant to local and global accounting standard, such as HGB and IFRS by account areas in the contract accounting. In asset accounting, parallel accounting is mapped fiscally, locally and globally through the assessment areas such as HGB and IFRS.
- Proper financial accounting: ensuring commercial and tax requirements applicable to systems of accounting, such as the principles of proper bookkeeping and DV-supported bookkeeping systems (GoB, GoBS), Principles of Data Access and Verifiability of Digital Documents (GDPdU) and in this context, the statements released by the Institute of Chartered Accountants (IDW).
- Flexible execution of tasks: the automatic function is not bound by fixed batch runs, but can realise any execution dates and thereby equalises the daily business.
- Centralised view of all contracts: data can be displayed from the perspective of both an individual contract and all contracts in real time.